Thursday, October 29, 2009

Extra Tests boost profits for RFU

Twickenham stadium
Twickenham hosted seven Test matches in the year to June 2009

The Rugby Football Union has announced a rise in profits, helped by an increase in Test matches at Twickenham.

Announcing its financial results for the year to June 2009, the RFU saw corporate sales badly hit this year.

But seven Tests at Twickenham in that period, compared to five in the previous 12 months, helped turn a £500,000 loss into £9m pre-tax profits.

Nick Eastwood, the RFU's finance director, said: "We remain cautious and are managing our business accordingly."

The RFU, which is the sports governing body for England, said the recession had led to fewer corporate sales at Twickenham - particularly for the 2009 Six Nations, when they dropped 40% on a match-by-match basis.

However, "prudent action" to save money before the tournament helped cope with the loss, it added.

The RFU also reported that turnover rose 20% to £119m and its net worth was up 6% to £151m during the 12 months.

Chief executive Francis Baron said new conference facilities and a new hotel and health club would help boost finances over the next year.

"We have a vision to turn Twickenham into a 365-day-a-year business, and it is pleasing to see we are already making progress towards this goal," he added.

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